The Indian Mutual Fund Industry

A Comparative Analysis of Public vs Private Sector Performance

verfasst von: G. V. Satya Sekhar

Verlag: Palgrave Macmillan UK

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

Dr. Sekhar offers comprehensive knowledge on the mutual fund industry in India and provides ready-made practical information for investors. He presents an overview of investment patterns for both public and private sector mutual funds, and analyses the performance of selected schemes using various measures of risk.

Inhaltsverzeichnis

Frontmatter

1. Introduction

Abstract

The concept of mutual funds has always been conceived as pooling the resources of small investors and deploying the same in the capital markets to help industrialization through participation in the equity and debt instruments. Mutual fund industry imparts formal identity and provides access to the payments system and to the savings safety net like deposit insurance. More recently, the focus of the Government of India is on establishing the basic right of every person to have access to affordable basic financial services offered by banking and non-banking companies.

G. V. Satya Sekhar

2. Review of Literature

Abstract

In India, there are a few studies on mutual funds, which have a complete scientific analysis, primarily due to the comparatively short period of existence of mutual funds. Samir et al. (1994) reviewed the work done with respect to capital markets during the 15-year period from 1977 to 1992.¹ They mentioned that a large number of works are merely descriptive or prescriptive without rigorous analysis. However, a rigorous scientific research was carried out in this subject in other countries. Besides this, now we can obtain a lot of information through different websites or portals like ‘mutualfundsindia.com’.²

G. V. Satya Sekhar

3. Trends in Resource Mobilization

Abstract

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India (UTI), at the initiative of the Government of India and the Reserve Bank. The history of mutual funds in India can be broadly divided into four phases¹. In the first phase (1964–1987) UTI enjoyed monopoly status in the mutual fund industry. In the second phase (1987–1993) some public sector mutual funds set up by the public sector banks and LIC and GIC were launched. In the third phase (1993–2003) the government allowed private players to offer mutual fund schemes, giving Indian investors a wider choice of fund families. In the fourth phase, following the repeal of the Unit Trust of India Act 1963 in February 2003, UTI was bifurcated into two separate entities.

G. V. Satya Sekhar

4. Investment and Investors’ Analysis

Abstract

In mutual fund organizations, the mutual fund trust appoints the ‘Asset Management Company’ (AMC) to look after the funds of trustees of mutual funds. AMC is in charge of funds management and allocation of assets of unit holders. Such allocation of assets is nothing but a judicious ‘investment’ of ‘resources mobilized’ from investors. Resource mobilization patterns and projections for the mutual fund industry and factors influencing resource mobilization were discussed in Chapter 3.

G. V. Satya Sekhar

5. Performance of Mutual Funds

Abstract

We have examined the trends in resource mobilization and factors influencing it (Chapter 3) and investment pattern vis-à-vis investors’ composition (Chapter 4). Now it is necessary to examine the performance of various schemes offered by the mutual fund organizations because scheme performance is the main criterion for investors’ interest in investing in mutual funds. Ultimately, these resources will be invested in different financial instruments for better returns to the investors as well as AMCs. Underperforming schemes act like warning signals to the mutual fund organizations, and result in loss of hard-earned money of investors.

G. V. Satya Sekhar

6. Investors’ Behaviour: Survey Findings

Abstract

This chapter is intended to examine investors’ attitudes towards mutual funds. These empirical data results will be helpful for mutual fund organizers to decide the nature and type of schemes to be offered to prospective investors. The chapter analyses investors’ opinions on various issues such as investment purpose, returns from mutual funds, understanding the techniques of mutual fund investment and proposals for future investments in mutual funds. This survey is also useful to examine the disparity in investment behaviour among various income groups as well as gender disparity.

G. V. Satya Sekhar

Backmatter

Titel: The Indian Mutual Fund Industry
verfasst von: G. V. Satya Sekhar
Verlag: Palgrave Macmillan UK
Electronic ISBN: 978-1-137-40799-3
Print ISBN: 978-1-349-48830-8
DOI: https://doi.org/10.1057/9781137407993